Writings about residential real estate and all things home, by Cynthia Cummins of Kindred SF Homes
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Luxury auction is a fantastic modality for selling and buying real estate, but it’s a relatively new concept here in the United States. In New Zealand and Australia, it’s de rigueur. (But then – as some would say – they’re a bit more sensible and civilized down under.)
We’re currently offering 415 Eureka #1 for sale via Harcourts luxury non-distressed auction (to be held 11.3.22). It’s an appealing means to an end for sellers, especially in a market where it’s hard to find a path to true “market value.” It’s always a comfortable way for buyers to get a great price on a home. And it’s entertaining – if you have time to tune in to the online auctions held every other Thursday at noon.
Historically, San Francisco residential properties consistently find their (high) levels, because 1) months-of-supply is traditionally low and 2) demand is traditionally high. Consequently, the climate has consistently been favorable for sellers.
But when the market leans toward “balance” or buyers (as it is doing now), agents, sellers and buyers alike don’t quite know how to react. Advantage buyer! Enter the luxury auction!
Nobody likes "competition" and auction creates a level playing field and complete transparency. It removes all the guesswork. Buyers get to see exactly what the next best offer is and they receive validation that they're not alone (and not insane) about desiring a particular property.
Buyers end up paying as little as $1k or $5k more than the next best bid, so there's never the queasy feeling that they vastly overpaid. (That is always a worry with our more traditional approach involving out-of-sight evaluation of competing offers.)
In all other respects, luxury non-distressed auction sales are just like “regular” transactions. We use the San Francisco Association of Realtors contract. There are no additional fees for buyers. You can ask for normal contingencies and terms. Nothing feels risky or surprising.
If you’d like to know more, please reach out and we can explain or point you toward a Harcourts Auctions representative who can tell you more.
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